Internet Challenge

General Electric Company

The General Electric Company maximizes its productivity through diverse decision areas of its operations management. The company relies on digital technologies to ensure that its multinational business remains competitive. The company works with several operations decisions, including the design of goods and services; quality management; process and capacity design; location strategy; and job design and human resources (Young, 2017).

The tactical decisions applied at GE include job design and human resources. The company supports its culture of adaptation and learning through short training sessions for its staff. This strategy contributes to the capabilities of the workforce in fulfilling its business goals. The continuous improvement programs by GE push for innovation and productivity (GE Annual Report, 2016). The design of goods and services is another example of tactical decisions. The first priority is the quality of goods, while cost comes in second. To that end, advanced digital technologies are used for product and operations consistency. However, because GE is a multinational business, specific divisional policies are applied; for example, the Energy Connections and Lighting operation segment has a different cost approach from the Aviation segment of the business. This flexibility of the global business addresses industry-specific challenges (GE Annual Report, 2016).

The strategic decisions include quality management which ensures that the quality of the product meets the customer’s expectations. The company researches the customer’s quality expectations and aligns these with its quality management guidelines. The guidelines facilitate the effectiveness of operations (GE Annual Report, 2016). Process and capacity design is another area of strategic decision-making where the operations management aligns its decisions with production goals. For example, the company technology system uses automated tools which ensure production is at maximum operational efficiency (GE Annual Report, 2016). Location strategy is the other decision that deals with the physical facilities’ location. The company uses the 4Ps matrix to strategically determine the location of its facilities, which are also based on market proximity and resource accessibility (GE Annual Report, 2016).

Ritz-Carlton Hotel Company

The Ritz Carlton has remained at the top as the leading luxury lodging brand and is the only company to win the Malcolm Bridge National Quality Award in the service industry twice (Reiss, 2009). The operations decisions applied in the business include location, quality products, high customer service standards, qualified and motivated employees, and company culture.

The tactical decisions include high standards of customer service and qualified and motivated employees. The company belabors itself in providing exceptional services to its customers (Ritz-Carlton Annual Report, 2017). Employees are allowed to spend up to $2000 to go out of their way to make the customers’ experience unforgettable. The employees are trained often and effectively to ensure that they are able to handle all types of clients adequately, the latter’s mannerisms or character notwithstanding. An employee will serve an irritable customer with the same grace and poise as would a pleasant customer (Reiss, 2009).

The strategic decisions include offering quality products, location, and company culture. The company slogan is ‘ladies and gentlemen serving ladies and gentlemen.’ The company first ensures it gets the best locations to set up its hotel facilities. Once the location is determined, the structure is put up that will ensure high standards of luxury are included, such as Olympic-size swimming pools, top-grade Jacuzzis, and pro-golf and tennis courts, among others. The in-house facilities are sourced from world-class suppliers, including toiletries, bedding, beds, and upholstery, which ensure that clients have a luxurious experience. Lastly, the employees are recruited from top hospitality training institutions, thus ensuring they have the necessary skills to work in the Ritz-Carlton hotels (Annual report, 2017).

Differences in the Operational Decisions

The operations decisions between GE and Ritz-Carlton are similar in that they both focus on having the best products provided for their customers, highly qualified employees, and strategic locations to maximize resources and increase sales. The main difference between the two companies with regard to operations management is that GE works at minimizing costs to remain competitive in its industry, while Ritz Carlton spares no expense to remain the leading luxury company in its industry.

References

General Electric (2016). Annual Report. https://www.ge.com/ar2016/

Reiss, R. (2009). How Ritz-Carlton Stays at the Top. https://www.forbes.com/2009/10/30/simon-cooper-ritz-leadership-ceonetwork-hotels.html#3be01e810b12

Ritz-Carlton Annual Report (2017). http://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_XHR_2017.pdf

Young, J. (2017). General Electric Company Operations Management Areas: 10 Decisions, Productivity. http://panmore.com/general-electric-company-ge-operations-management-areas-10-decisions-productivity

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[u01a1] Unit 1 Assignment 1: Internet Challenge

Complete the Internet Challenge activity on page 26 of your textbook. Describe the service and manufacturing Web sites you visited and include a table or chart according to the activity instructions in your text.

Internet Challenge

Select and five characteristic operations management decisions. Identify and report whether these decisions are tactical or strategic. Also, compare and contrast operational decision differences between service and manufacturing companies reviewed.

Be sure to review the scoring guide in advance to ensure that you have met the grading requirements.

Readings

Read Chapter 1, “Introduction to Operations Management,” and Chapter 2, “Operations Strategy and Competitiveness,” in the Reid and Sanders textbook.

Resources

Internet Challenge Scoring Guide

Due Date: Unit 1
Percentage of Course Grade: 2%.